Britain’s economic reputation has been further damaged after the International Monetary Fund (IMF) forecast that the UK economy will fare worse this year than any other country in the developed world, including Russia.
In the latest update of its economic forecasts, the IMF said that it expected the UK’s gross domestic product (GDP) to contract by 0.6% in 2023.
To add further humiliation for the chancellor and prime minister, even as Britain’s outlook was downgraded, most other countries saw their forecasts upgraded.
However, the Fund stated that the UK economy would experience a downgrade due to “tighter fiscal and monetary policies, financial conditions, and still-high energy retail prices weighing on household budgets.”
The UK was previously forecast to grow by 0.3% this year and 0.6% next year.
Now, said the Fund, it should expect -0.6% this year and 0.9% growth in 2024.
